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2021 Limitations:  

 
Elective Deferrals (401(k) and 403(b): $19,500*
 
457(b)(2) and 457(c)(1) Limits: $19,500*

Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans: $6,500*

Defined Benefit Plan Maximum Annual Benefit: $230,000

Defined Contribution Plan Maximum Annual Contribution: $58,000

Annual Compensation Limit: $290,000

Highly Compensated Employee ("HCEs") Compensation Threshold: $130,000
 
Key Employee Officer Compensation Threshold: $185,000
 
Individual Retirement Accounts ("IRAs"), for individuals under age 50: $6,000

Individual Retirement Accounts ("IRAs"), for individuals 50 and over: $7,000

SIMPLE Retirement Accounts: $13,500

SIMPLE Catch-Up: $3,000

SEP Annual Compensation Floor: $650 

SEP Compensation Limit: $290,000

Qualified Longevity Annuity Contract Premium Limit: $135,000

Income Subject to Social Security Tax: $142,800

Social Security Tax for employees and employers: 6.2%

Medicare Tax for employees and employers: 1.45% 

2020 Limits

2019 Limits



*The general rule for deposit of employee elective deferral contributions into the plan is the earliest date that such contributions can reasonably be segregated from the employer’s assets but not later than the 15th business day of the month following the month in which participants’ contributions are withheld from compensation. 

There is a safe harbor deposit rule that states if employee elective deferral contributions are deposited no later than the 7th business day following the date contributions are withheld from pay then these contributions are deemed to be timely deposited.

 Please note that if a deposit of contributions is determined to be late, the result is a prohibited transaction.  Accordingly the plan sponsor must contribute lost earnings and pay excise taxes on the amounts involved.

 We strongly recommend that you adhere to the safe harbor deposit rule.

 If you are considered a large plan (more than 100 participants), the safe harbor deposit rule is not applicable and you may be required to fund the contributions even sooner, depending on facts and circumstances.



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